Managerial Accounting, 3rd Edition

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Recognizing that most students will pursue careers as managers not accountants, Managerial Accounting omits topics of less importance and concentrates on the key accounting concepts that managers need to understand in order to make successful, informed decisions. Managerial Accounting focuses attention on decision making through incremental analysis and performance measurement. Students are motivated to learn managerial accounting by connecting concepts and techniques to the real world; using real cases and real manager's comments on real company issues. Students and instructors alike have praised this text's clear and concise writing style, to-the-point discussions, illustrated ideas, and examples that are presented to make ideas concrete

PROFESSOR JAMES JIAMBALVO joined the accounting faculty at the University of Washington after receiving a Ph.D. in accounting from The Ohio State University. A CPA, he has audit experience with the firm of Haskins and Sells (now Deloitte & Touche), and has served on the national academic advisory board of Deloitte & Touche LLP. Professor Jiambalvo has served as chairman of the UW Accounting Department and he holds the PricewaterhouseCoopers and Alumni Endowed Professorship.

Managerial Accounting in the Information Age

3

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Goal of Managerial Accounting

4

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Planning

4

(1)

Budgets for Planning

4

(1)

Control

4

(3)

Performance Reports for Control

5

(2)

Decision Making

7

(1)

A Comparison of Managerial and Financial Accounting

7

(1)

Internal versus External Users

8

(1)

Need to Use GAAP

8

(1)

Detail of Information

8

(1)

Emphasis on Nonmonetary Information

8

(1)

Emphasis on the Future

8

(1)

Similarities between Financial and Managerial Accounting

8

(1)

Cost Terms Used in Discussing Planning, Control, and Decision Making

9

(1)

Variable and Fixed Costs

9

(1)

Variable Costs

9

(1)

Fixed Costs

10

(1)

Sunk Costs

10

(1)

Opportunity Costs

10

(1)

Direct and Indirect Costs

10

(1)

Controllable and Noncontrollable Costs

11

(1)

Two Key Ideas in Managerial Accounting

11

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Decision Making Relies on Incremental Analysis

12

(1)

You Get What You Measure!

13

(1)

The Information Age and Managerial Accounting

14

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Competition and Information Technology

14

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The Impact of Information Technology on Management of the Value Chain

14

(2)

Information Flows between Milano and Customers

15

(1)

Information Flows between Milano and Suppliers

15

(1)

Using Information Technology to Gain Internal Efficiencies

15

(1)

Software Systems That Impact Value Chain Management

16

(1)

Enterprise Resource Planning Systems

16

(1)

Supply Chain Management Systems

16

(1)

Customer Relationship Management Systems

16

(1)

Ethical Considerations in Managerial Decision Making

17

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Ethical and Unethical Behavior

17

(2)

Sarbanes-Oxley Act

18

(1)

A Framework for Ethical Decision Making

19

(1)

IMA Statement of Ethical Professional Practice

20

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The Controller as the Top Management Accountant

20

(2)

Making Business Decisions

22

(1)

Summary of Learning Objectives

23

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Appendix IMA Statement of Ethical Professional Practice

24

(1)

Principles

24

(1)

Standards

24

(1)

Resolution of Ethical Conflict

25

(1)

Key Terms

25

(1)

Self-Assessment

26

(1)

Interactive Learning

27

(1)

Questions

27

(1)

Exercises

27

(3)

Problems

30

(4)

Cases

34

(3)

Job-Order Costing for Manufacturing and Service Companies

37

(50)

Cost Classifications for Manufacturing Firms

38

(1)

Manufacturing Costs

39

(1)

Direct Material

39

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Direct Labor

40

(1)

Manufacturing Overhead

40

(1)

Nonmanufacturing Costs

40

(1)

Selling Costs

40

(1)

General and Administrative Costs

41

(1)

Product and Period Costs

41

(1)

Product Costs

41

(1)

Period Costs

41

(1)

Product Cost Information in Financial Reporting and Decision Making

42

(1)

Balance Sheet Presentation of Product Costs

43

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Flow of Product Costs in Accounts

44

(1)

Income Statement Presentation of Product Costs

45

(2)

Cost of Goods Manufactured

45

(1)

Cost of Goods Sold

46

(1)

Types of Costing Systems

47

(1)

Overview of Job Costs and Financial Statement Accounts

48

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Job-Order Costing System

49

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Direct Material Cost

50

(2)

Direct Labor Cost

52

(1)

Manufacturing Overhead

53

(1)

Assigning Costs to Jobs: A Summary

54

(1)

Eastlike Revisited: Using Job Cost Information

55

(2)

Relation Between the Costs of Jobs and the Flow of Costs in Work in Process, Finished Goods, and Cost of Goods Sold